A Look at DraftKings Inc. (DKNG) Shares in the Recent Past Indicates Growth

DraftKings Inc. (NASDAQ: DKNG) stock fell -1.90% on Thursday to $23.69 against a previous-day closing price of $24.15. With 10.03 million shares changed hands, the volume of the stock remained lighter than its average volume of 11.71 million shares. During the session, the Gambling company that operates in wider Consumer Cyclical sector, reached to the highest price of $24.65 whereas the lowest price it dropped to was $23.65. The 52-week range on DKNG shows that it touched its highest point at $26.41 and its lowest point at $10.52 during that stretch. It currently has a 1-year price target of $27.48. Beta for the stock currently stands at 1.77.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of DKNG was down-trending over the past week, with a drop of -1.21%, but this was up by 16.07% over a month. Three-month performance surged to 30.24% while six-month performance rose 61.27%. The stock gained 75.35% in the past year, while it has gained 107.99% so far this year. A look at the trailing 12-month EPS for DKNG yields -2.92 with Next year EPS estimates of -0.85. For the next quarter, that number is -0.28. This implies an EPS growth rate of 16.60% for this year and 53.80% for next year.

Float and Shares Shorts:

At present, 455.08 million DKNG shares are outstanding with a float of 437.23 million shares on hand for trading. On May 14, 2023, short shares totaled 30.23 million, which was 6.54% higher than short shares on Apr 13, 2023. In addition to Mr. Jason D. Robins as the firm’s Co-Founder, Chairman & CEO, Mr. Paul Liberman serves as its Co-Founder, Pres of Global Technology & Product and Director.

Institutional Ownership:

Through their ownership of 56.12% of DKNG’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 4.83% of DKNG, in contrast to 27.01% held by mutual funds. Shares owned by individuals account for 25.81%. As the largest shareholder in DKNG with 7.86% of the stake, The Vanguard Group, Inc. holds 35,478,097 shares worth 35,478,097. A second-largest stockholder of DKNG, ARK Investment Management LLC, holds 23,931,255 shares, controlling over 5.30% of the firm’s shares. Capital Research & Management Co is the third largest shareholder in DKNG, holding 18,079,439 shares or 4.00% stake. With a 3.12% stake in DKNG, the ARK Innovation ETF is the largest stakeholder. A total of 14,108,002 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 2.64% of DKNG stock, is the second-largest Mutual Fund holder. It holds 11,934,319 shares valued at 261.48 million. Vanguard Small Cap Index Fund holds 2.22% of the stake in DKNG, owning 10,043,277 shares worth 220.05 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2023, DKNG reported revenue of $466.19M and operating income of -$308.92M. The EBITDA in the recently reported quarter was -$280.92M and diluted EPS was -$0.50.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for DKNG since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With DKNG analysts setting a high price target of $39.00 and a low target of $17.00, the average target price over the next 12 months is $27.42. Based on these targets, DKNG could surge 64.63% to reach the target high and fall by -28.24% to reach the target low. Reaching the average price target will result in a growth of 15.75% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.

Summary of Insider Activity:

Insiders traded DKNG stock several times over the past three months with 25 Buys and 16 Sells. In these transactions, 2,724,973 shares were bought while 2,017,108 shares were sold. The number of buy transactions has increased to 126 while that of sell transactions has risen to 91 over the past year. The total number of shares bought during that period was 5,495,802 while 2,765,252 shares were sold.

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